Monopolisation linked to India's shaky economic growth, unemployment: Cong

The Congress on Friday claimed growing monopolisation by five big conglomerates, including the Adani Group, was linked to India's shaky economic growth, unemployment crisis and high inflation, and asserted that companies must expand but the government had a responsibility to ensure oligopolies or monopolies did not emerge.

The opposition party's remarks came days after the Adani Group said it had agreed to acquire CK Birla Group firm Orient Cement Limited in a deal valued at Rs 8,100 crore.

Congress general secretary in-charge communications Jairam Ramesh said on X, "Aap chronology samajhiye: September 2022: Modani acquires Ambuja Cements and ACC to become the country's second largest cement player."  "August 2023: Adani acquires Sanghi Industries, India's largest single-location cement unit. June 2024: Adani acquires Penna Cements, giving it substantial market share even in the last remaining region of south India. October 2024: Adani acquires Orient Cement, gaining an additional 2 per cent market share. Upcoming: Adani exploring the acquisition of Saurashtra Cement, Vadraj Cement, and the cement business of Jaiprakash Associates," he added.

As former RBI deputy governor and noted financial economist Dr Viral Acharya established, five big conglomerates -- including the Adani Group -- were building monopolies in 40 sectors, including cement, he said.

"This growing monopolisation is linked to India's shaky economic growth, unemployment crisis, and high inflation. In 2015, when a common man used to spend Rs 100 on goods, Rs 18 would go as profit to the business owner -- in 2021, the owner now gets Rs 36 in profits," Ramesh said in Hindi.

"Firms must grow. Companies must expand. But at the same time, the government has a responsibility to ensure competition is not stifled, oligopolies or monopolies do not emerge, takeovers are free and fair, and undue advantage arising out of access to political power is not exercised," the Congress general secretary said.

The Congress has been persistently attacking the government since Adani Group stocks took a beating on the bourses in the wake of US-based short seller Hindenburg Research making a litany of allegations, including of fraudulent transactions and share-price manipulation, on the conglomerate headed by industrialist Gautam Adani.

The Adani Group had dismissed the charges as lies, saying it complied with all laws and disclosure requirements.